Fiji’s Anti-Money Laundering and Counter-Terrorist Financing Efforts Face Challenges

Suva, Fiji - The Asia-Pacific Group on Money Laundering (APG) has published a report highlighting several areas of concern regarding Fiji’s anti-money laundering (AML) and counter-terrorist financing (CFT) efforts.

Key Findings

While Fiji has made progress in developing its AML/CFT regime, there are still significant gaps and weaknesses that need to be addressed.
The lack of comprehensive and reliable statistics across all AML/CFT-related agencies is a major concern.
Law enforcement agencies, including the Financial Intelligence Unit (FIU) and the Fiji Police Force (FPF), face limited capacity and resources, hindering their ability to effectively respond to financial intelligence and investigate money laundering offenses.
There is a lack of awareness among law enforcement agencies and the private sector regarding terrorist financing, particularly among designated non-financial businesses and professions (DNFBPs).
Legal and regulatory deficiencies have been identified, including the significant defect in Fiji’s terrorist financing offense and the lack of a comprehensive legislative framework to enable implementation of targeted financial sanctions.
Forfeiture outcomes are modest and do not reflect an effective implementation of confiscation policy objectives.

Recommendations

Strengthening the Legal and Regulatory Framework

Improve legal and regulatory framework to prevent money laundering and terrorist financing
Establish a comprehensive legislative framework to enable implementation of targeted financial sanctions

Improving Capacity and Resources

Enhance capacity and resources of law enforcement agencies, including the FIU and FPF, to effectively investigate and prosecute money laundering offenses
Increase awareness among law enforcement agencies and the private sector regarding terrorist financing, particularly among DNFBPs

Enhance international cooperation and information sharing to combat money laundering and terrorist financing
Improve collaboration between law enforcement agencies and other stakeholders to prevent and detect financial crimes

Conclusion

Fiji’s AML/CFT regime faces several challenges that need to be addressed to prevent money laundering and terrorist financing. The APG report has identified these weaknesses and made recommendations to help Fiji improve its regime. It is essential for Fiji to implement the recommendations to ensure that its AML/CFT regime is effective and efficient.

Recommendations in Brief

Strengthen legal and regulatory framework
Improve capacity and resources of law enforcement agencies
Enhance international cooperation and information sharing
Conduct awareness campaigns among law enforcement agencies and the private sector regarding terrorist financing
Establish a comprehensive legislative framework to enable implementation of targeted financial sanctions